Human Resource Management Report: An Analysis of Aldi's Practices

This report provides an analysis of Human Resource Management (HRM) practices within Aldi, a leading company in the retail sector. It explores the purpose and functions of HRM, including recruitment, selection, training, and employee relations, highlighting their impact on the company's success. The report discusses the strengths and weaknesses of different recruitment approaches, the benefits of HRM for both employers and employees, and the effectiveness of various HRM practices. It also emphasizes the importance of employee relations in decision-making and key elements of employment legislation. The report concludes with an application of HRM practices in a work-related context, demonstrating how effective HRM contributes to Aldi's productivity and profitability. Desklib provides access to past papers and solved assignments for students.

Table of Content
1

s
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P 1 Purpose and the functions of HRM..............................................................................................3
P 2 Strengths and weaknesses of different approaches to recruitment and selection.........................4
TASK 2....................................................................................................................................................5
P 3 Benefits of different HRM for employer and employee..............................................................5
P 4 Effectiveness of different HRM practices....................................................................................6
TASK 3....................................................................................................................................................7
P 5 Importance of employee relations in respect to influencing HRM decision-making...................7
P 6 Key elements of employment legislation.....................................................................................8
TASK 4....................................................................................................................................................9
P 7 Application of HRM practices in a work-related context............................................................9
CONCLUSION.......................................................................................................................................10
REFERENCE..........................................................................................................................................11
2

INTRODUCTION
Today every business organisation is competing with rival firms in same industry to
capture maximum share of market. Aldi is one of leading companies in retail sector in United
Kingdom as well as all over world. To maintain its standard and image among customer, its
employees play a vital role as they are responsible for all types of operations and activities of
business (Lamond and Zheng, 2010). So human resource management is very important part
of company and has several functions to help in gaining maximum profit and revenue in long
term. Some of them are recruitment, selection, training, development, maintaining work
condition and establishing a healthy relationship among employees at workplace. In
following report, weakness and strength of approaches will be discussed. There are different
HRM practices which benefit to both employer an employees of company A proper human
resource management helps in capturing a huge target market through maximising customer
satisfaction and employee productivity in future (Beer, Boselie and Brewster, 2015)As
workers have major impact on crucial decisions of firm, they must have good relationship to
give their fullest efforts at work.
TASK 1
P 1 Purpose and the functions of HRM
Purpose-One of major purpose of human resource management is that it makes sure
if employees are making efforts to contribute in company’s success in future. This utilises
capabilities of workers so that maximum productivity can be gained and quality of products
can be improved (Uysal, 2014). As Aldi wants to open a new branch in Wembley, it has to
select some efficient employees so that right person can be placed at right place to do suitable
tasks. Another purpose of human resource management is to satisfy employees through
rewards and promotion to higher designation which motivate to work harder for firm in
future. It is used by company to improve existing performance of human resource and uplift
standard of company. Aldi uses HRM to retain currant employees by fulfilling their
individual goals and considerable compensation to them. As employees can foster or hinder
sales and quality of product, they are made more efficient by regular training and
development programmes. To provide occupational safety, HRM is needed so that accidental
incidents can be avoided through recruiting skilled and well-trained people at company
especially in new outlet in Wembley.
3

Functions-There are many different functions of human resource management which
are important foe Aldi to accomplish its objectives and goals of profit maximisation and
revenue generating (Giauque, Anderfuhren and Varone, 2013). One of major functions is
recruitment and selection in which Human resource manager uses to hire most suitable
candidate for company’s betterment and its brand. Through this function, company can fulfil
number of vacant positions and maintain productivity of firm. A better employee will deliver
positive support to make customer satisfied. Another function of human resource
management of Aldi is orientation in which company assigns roles ad duties to employees so
that they can be clear about what they should do to contribute in firm competency. Another
function of HRM is that manager tries to keep a healthy and friendly atmosphere at
workplace so that no employee feels inferior in comparison to others. If there is a conflict is
found superiors make effort t resolve it as soon as possible and maintain the decorum of
workplace. Last but not least function of HRM is training and development which helps in
sharpening existing skills of employees and make them more efficient to improve product
quality in long term and retain all current clients as well as attract new consumers. Thus,
human resource management is one of most basic system for company to run business
smoothly.
P 2 Strengths and weaknesses of different approaches to recruitment and selection
Being a one of leading firm in retail market, Aldi uses different approaches in
recruitment and selection to get most suitable candidate for company (Costen, 2012). A
proper staffing in firm can lead to improved performance of product among customers in long
term. Along with many benefits of these aspects, there are some weak points which can harm
progress of business organisation as followings.
Strength-As new people have fresh views and idea which can be used by company to
modify and improving its existing policies and system. So, Aldi recruits’ new talent which
can add value to organisation in future (Van , 2010). Another positive point of recruitment
and selections application is that it provides better training programmes which help in
uplifting productivity of employees and their performance. Internal and external recruitment
and selection approaches are effective to attract many talented candidates so that company
can grow with more rapid rare in long term. Online process to recruit is mostly used now a
day as it is cost effective and fast to get a skilled person across the world. Another strength of
these both approaches is that external recruitment bring new and different sight to compete in
4

retail market in comparison to other rival in same industry. It strengthens bond between
employer and employees which has positive impact on overall business of company.
Weakness-With these above strong and good influence on organisation recruitment
and selection approaches might hinder the progress of company in future. One of major risk
in these aspects is that there are sometimes when human resource manager takes so much
time in selecting most suitable candidates for company which leads to more cost and harmful
for business. Another weakness is that if company only focuses on internal recruitment and
selection then it will not extend scope for business as it will have only limited opinion about
how to progress in future. It can minimise better opportunities for company to run new outlet
and capture maximum target market in retail sector of Unite Kingdom (Fetzer and Tuzinski,
2013). On other hand if Aldi concentrates only on external recruitment then it will cause
more cos due to advertisement and market research to get the best candidate for firm.
External candidate requires more accurate verification process as it might be risky for
company to hire former employee of other competitor brands. In online recruitment approach,
there is possibility to get fake information about qualification or skills. Thus, approaches of
recruitment and selection have their own positive and negative sides for business of Aldi.
TASK 2
P 3 Benefits of different HRM for employer and employee
As human resource management is a crucial system for Aldi to achieve its short and
long-term objectives of maximum productivity and revenue in long term (Brewster and
Hegewisch, 2017). It provides several benefits to employers as well as employees as
followings.
Benefits to employer-One of most important benefits of human resource
management for employer is that it makes it easy to hire most skilled and experienced
candidates in an efficient manner. Employer can test all abilities if individual who can
perform up to mark of company and helps in improving existing position in retail market in
long term.HR manager uses many techniques to get right people for particular task and gain
competitive advantage in comparison to other competitor brands (Snape and Redman, 2010).
Human resource management monitors current performance of employee and help in
motivating them to put more efforts at given work. Another benefit to employer is that it
helps in creating a healthy atmosphere a culture among workers so that they can be
5

supportive to each other in case of need. By HRM, manager can provide a clean and safe
environment to employees and if any conflict is between them, he can resolve it within time
with care. With the help of HRM, a good relationship between employees is established.
Company can boost human resource morale by giving them reward for their outstanding
performance.
Benefits to employee-Along with employer, HRM has many advantages for
employees of Aldi as it keeps motivating them to work hard with dedication. One of major
benefits to workers of company is that they get satisfied when they are recognised and
appreciated by manager for their best efforts. When any worker gets promotion or appraisal,
his attitude is more become enthusiastic towards firm and his task. Employees are provided
their individual rights which keep them mentally satisfied to give their opinion for progress of
organisation. Another benefit to employee is that different training and development
programmes sharpen current capabilities and skills which can be used to provide better
quality of product to customers in future (Moideen, Lamki and Murthy, 2011). HRM helps in
developing workers and building a fresh and flexible atmosphere at workplace in term of
working schedule, assignment of tasks and communication formats. There are many
compensation, medical and retirement benefits provided to employees of Aldi as per human
resource management system. Different performance analysis motivates workers to maintain
or improve their productivity to get promoted in term of designation and remuneration. Thus,
there are many benefits of human resource manage to employer firm as well as employees.
P 4 Effectiveness of different HRM practices
Human resource management practices help in maintaining work performance of
employees so that company can provide the best to its target customers. All major aspects of
this system are effective as they make sure of profit and productivity of firm in long term.
Followings are some practices which play a vital role in achieving targets within time.
Training and development-This is one of most important and helpful practices
related to human resource management through which existing working capacity of an
employee is increased and more deep knowledge is provided especially in case of technical
work in company. More clear division of roles and responsibilities contribute to understand
their job better in future which will lead to focus on specific task (Patel and Cardon, 2010).
So, this practice makes skills better and organisation like Aldi ca gain benefit in term of
maximum profit and more productivity.
6

Recruitment and termination-This practice of human resource management helpful
to keep all best employees for great amount of productivity of firm which will lead to more
market share in retail sector. There are many ways in which company conducts recruitments
of candidates to get the best person for particular position in firm. For example, personal
interview helps in getting personal objectives of candidates which can boost progress of
organisation. On other hand, if there is any continue lac of performance of employee then he
might be terminated from job to avoid any weak productivity.
Career management-Being a big brand in retail market, Aldi makes sure that there
are employee career centres which can help in widening scope of professional future of its
employee. It will motivate them to feel valued and involved which consequently benefit
organisation in term of dedicated as well as loyal duty from them (Caligiuri, 2014). There are
workshops which are organised by firm to access interest, values and ability of employer and
employees so that further strategies can be adopted to motivate them in long term. These all
effort will have mar positive impact on productivity of workers and consequently will
increase profitably of organisation.
Performance appraisal-This practice of human resource management helps in
monitoring standard of work the employees do. Manager keeps regular eye on level of
performance of worker and top ranker will be provided appraisal in term of higher salary or
higher designation within company. These types of achievement encourage employees and
has positive impact to work harder with dedication.
Reward system-This is the last but not least practices of human resource
management which directly boosts profitability and productivity of business organisation like
Aldi. For example, employee who has been recognised as topper in getting quality output
within time, will be given extrinsic or superior reward by firm. So that he can maintain and
put more efforts to contribute in organisation profit and productivity (Wheeler, Harris and
Harvey, 2010). Thus, there are many HRM practices which are effective and help in
accomplishing objectives and purposes of company in long term.
TASK 3
P 5 Importance of employee relations in respect to influencing HRM decision-making
As every business organisation has to make crucial decisions to progress in long term,
employees play a vital role in this process. Aldi is seeking to establish a new outlet, it needs
7

to make some important decision which are agreed by all employees and employer so that
they can put their full efforts to get success for company (Bach and Kessler, 2011). For
example, if there are good relations among employees then there will be positive attitude
towards work. On other hand, if there is any conflict among them, then decision making
process can be weakened. First of all, in decision making of HRM, problem is identified in
which good relation of employees can helps them to work collectively and it will lead to easy
finding of problem with accuracy.
At second stage of decision making process, team is required to find a way to solve
problem in which if there is god relation then leader can easily assign duties ad roles to each
particular member. They will be able to share their opinion and ideas with others to develop
alternative solutions (Krot and Lewicka, 2012). On other hand if there is any difference
among members then further proceeding can be delayed and consequently cause lass to
company in term of outcome. In next, they have to evaluate all searched solutions. If there is
friendly bond among employees, it will be easy to analyse positive and negative results of all
solutions and the best solution is identified with accuracy. When there is decision to be made
about implementing selected solution of particular problem then good relationship among
employee benefits the company in term of competitive advantage as after effect of
implementation.
Friendly bond will motivate them to use innovative methods to implement solution
which can gain more profit in long term. It will lead to better quality product for customer
and help organisation to capture more market share in retail industry. At final stage of
decision making, related employee must monitor whether implementation is useful or not
(Dauda, 2010). If there is any difference found between desired and real gained outcome then
appropriate actions are taken with agreement. It is only possible when all employees have
transparent and positive attitude for each other.
P 6 Key elements of employment legislation
There are different rules and regulations which are implied by government and legal
authorities so that there is smooth and code of conduct at workplace. Followings are some
major acts for betterment of employees which are compulsory as per legislation.
Employment relation act 1999-This is one of important acts which is implied on
commercial organisations (Cingano, Leonardi and Pica, 2010). As per this, a cordial
8

relationship is established among employees which is duty of company. It makes sure that
there is no conflict or negative attitude of worker for others at workplace.
National minimum wages act 1998-This is also a crucial act which helps workers to
get minimum amount of wages by business organisation. For example, if any employee is
over 25-year age the he must get minimum wages of £7.50 per hour so that they will not be
exploited by companies to gai maximum productivity.
Equal pay act 1970-As per tis legislative rule, every employee who is at same
designation and same qualification, should be provided equal payment in comparison to other
peer at workplace. For example, male and female employees should be treated equally
without any partiality (Banker, Byzalov and Chen, 2013). If any employee is working as hard
as other employees then they all should be paid equally.
Sex discrimination act 1975-This regulation is implied by law where men and
women both work. It protects them from different treatments by firm or manager on basis of
their gender. This includes several aspects for defence of their rights in training employment,
provision of goods, harassment and education at workplace. This creates secured feeling
among female employees.
Other legislator acts-There are many other legislative rules and acts which protect
rights of employees at workplace so that they do not feel insecure and unsafe in organisation.
Some of them are data protection act 1998, employment tribunal act 1996, work and families
act 2006, disability discrimination act 1995 and race relation act 1976.Thus there are many
different key elements of employment legislation which play avital role in maintaining ethical
atmosphere in Aldi.
TASK 4
P 7 Application of HRM practices in a work-related context
Being one of major brands in retail sector, Aldi applies all HRM practices very
effectively and improves its productivity in long term (Schalk, Timmerman and Van , 2013).
One of most crucial practices of the mentioned firm is recruitment and selection in which it
takes consequent steps to get the most suitable candidate for particular position in firm. For
example, first human resource manager of firm advertises its vacancy to invite candidates.
Their CVs are analysed by HR team and few scrutinised candidates are called for next stage
9

in which they are personally interviewed. Other tests can be related to aptitude or technical
exam after which they are given marks or ranking by employer. On basis of this results, top
candidate is selected for final appointemnt in company.
As it is he firm, it might need more candidates in future, so Aldi retain some rejected
candidate’s information and call them in future vacancy. Another two most important HRM
practice are reward system and training. The mentioned company gold points system for
reward in which every employee is given points on basis of his performance toward work and
ranking is made through points. A special reward is given to employee who gets highest
points and the lowest ranked employee is motivated to improve his performance in future.
Training also help in uplifting standard of working ability of workers in company (Giauque,
Resenterra and Siggen, 2010). Thus, these all human resource practices are essential for
growth of firm in term of profit maximisation, revenue generating, capturing more market
share and customer satisfaction in future.
CONCLUSION
From the above report, it can be concluded that human resource management is an
inseparable pat of business organisation to gain maximum profit margin in long term. If there
is any types of discrimination with employees on basis of gender, physical or mental
disability, skin tone, language and religion, then it can damage self-confidence of them and
consequently weaken the productivity of company in future. So, to avoid these negative
situations at workplace, there are many rules and regulation implied by UK law related to
employment legislation. There are different applications of human resource management
practices in specific condition to take important decision. To increase product quality and
goodwill in retail market, Aldi tries to keep its human resource happy and satisfied so that
they will add value to firm.
10

REFERENCE
Books and Journals
Bach, S. and Kessler, I., 2011. The Modernisation of the Public Services and Employee
Relations: Targeted Change. Palgrave Macmillan.
Banker, R.D., Byzalov, D. and Chen, L.T., 2013. Employment protection legislation,
adjustment costs and cross-country differences in cost behavior. Journal of
Accounting and Economics. 55(1). pp.111-127.
Beer, M., Boselie, P. and Brewster, C., 2015. Back to the future: Implications for the field of
HRM of the multistakeholder perspective proposed 30 years ago. Human Resource
Management. 54(3). pp.427-438.
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in European Human
Resource Management: The Price Waterhouse Cranfield Survey. Taylor & Francis.
Caligiuri, P., 2014. Many moving parts: Factors influencing the effectiveness of HRM
practices designed to improve knowledge transfer within MNCs. Journal of
International Business Studies. 45(1). pp.63-72.
Cingano, F., Leonardi, M. and Pica, G., 2010. The effects of employment protection
legislation and financial market imperfections on investment: evidence from a firm-
level panel of EU countries. Economic Policy. 25(61) pp.117-163.
Costen, W.M., 2012. Recruitment and Selection. The Encyclopedia of Human Resource
Management: Short Entries. pp.379-387.
Dauda, Y.A., 2010. Technological innovation and organisational performance: employee
relations strategies. Nigerian Journal of Industrial Relations. 11. pp.96-110.
Fetzer, M. and Tuzinski, K. eds., 2013. Simulations for personnel selection. Springer Science
& Business Media.
Giauque, D., Anderfuhren-Biget, S. and Varone, F., 2013. HRM practices, intrinsic
motivators, and organizational performance in the public sector. Public Personnel
Management. 42(2). pp.123-150.
Giauque, D., Resenterra, F. and Siggen, M., 2010. The relationship between HRM practices
and organizational commitment of knowledge workers. Facts obtained from Swiss
SMEs. Human Resource Development International. 13(2). pp.185-205.
Krot, K. and Lewicka, D., 2012. The importance of trust in manager-employee
relationships. International Journal of Electronic Business Management. 10(3).
p.224.
Lamond, D. and Zheng, C., 2010. HRM research in China: looking back and looking
forward. Journal of Chinese Human Resources Management. 1(1). pp.6-16.
Moideenkutty, U., Al-Lamki, A. and Sree Rama Murthy, Y., 2011. HRM practices and
organizational performance in Oman. Personnel Review, 40(2), pp.239-251.
11

Patel, P.C. and Cardon, M.S., 2010. Adopting HRM practices and their effectiveness in small
firms facing product‐market competition. human resource management. 49(2).
pp.265-290.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations
influence decision making on e-HRM applications. Human Resource Management
Review. 23(1). pp.84-92.
Snape, E. and Redman, T., 2010. HRM practices, organizational citizenship behaviour, and
performance: A multi‐level analysis. Journal of Management Studies, 47(7),
pp.1219-1247.
Uysal, G., 2014. Taylor, HRM, strategic HRM with jobs, employee performance, business
performance relationship: HR governance through 100 years.
Van den Brink, M., 2010. Behind the scenes of science: Gender practices in the recruitment
and selection of professors in the Netherlands. Amsterdam University Press.
Wheeler, A.R., Harris, K.J. and Harvey, P., 2010. Moderating and mediating the HRM
effectiveness—Intent to turnover relationship: The roles of supervisors and job
embeddedness. Journal of Managerial Issues. Pp.182-196.
Online
Jeremy Bradley,2017. What Are the Five Main Functions of Global Human Resource
Management? [Online]. Available through: < http://smallbusiness.chron.com/five-
main-functions-global-human-resource-management-61538.html>. [Accessed on
25th July 2017].
12